NHS pension in simpleton terms please.

[JoshLymanIsHotterThanSam]

I’m late 30’s, been a part time employee of the NHS for 6 years. In my time I’ve averaged 29 hours a week, started as a band 2 but now a band 4 (for the last 3 years).

I really don’t understand pensions but I’m wondering if I should pay more into the scheme? I would like when I retire to be able to pull a pension similar to my current earnings (£20k per annum). Is this feasible considering I was a late comer to the pension scheme? I suspect in a few years I’ll go back up to full time (currently 30 hours p/w) and of course I’d like to hope by the time I retire I’m band 5/6.

Im on the 2015 scheme at the moment.

Leaving inflation increases aside (as it will only mean your pension in retirement is worth the same as £20k today, even if the actual number will be higher), your accrual rate is 1/54th.

That means you would have to contribute 54 years to get the same amount in pension as you have in salary.

Well 54 years isn’t going to happen without over paying it I guess 😆.

How does it work if I up my hours and potentially get a promotion?

You will need to earn approximately 1,080,000 while working for the nhs.

So of you are late 30's. You have approximately 27 years to do this.

So you need to earn approximately 40,000 a year for a minimum of 27 years

Obviously each year is updated by a certain percent but that takes inflation into account.

So you need to aim for approx 40k per year, more if you work fewer years, and less if you work for longer and retire later.

You could look into buying added years of pension.

You can purchase added years. See attached link. The 2015 pension is career average rather than final salary so getting a promotion and increasing hours doesn’t make as much difference as on the previous pension scheme.

www.nhspensions.nhsbsa.nhs.uk/PensionCalculators/AdditionalPension/index.aspx

Roughly though, to retire on roughly your current salary in todays spending power, at state pension age assuming that ends up at 70, state pension plus continuing as you are should be fine assuming neither the state nor nhs pension get much worse.

Have I understood this correctly. If I pay a further £85 a month I’ll end up with a pension from the additional scheme at £1500 a month?

I really don’t understand this 😂

£85 will buy you £1500 extra a year, but per month.

*not

I was going to say I thought that was optimistic of me 😂.

I don’t understand my TRS and there’s no simpleton explanations of it anywhere which doesn’t help.

I wouldn’t mind but I’m quite bright until you start throwing maths at me.